Correlation Between Techcom Vietnam and Sea Air
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By analyzing existing cross correlation between Techcom Vietnam REIT and Sea Air Freight, you can compare the effects of market volatilities on Techcom Vietnam and Sea Air and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Techcom Vietnam with a short position of Sea Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techcom Vietnam and Sea Air.
Diversification Opportunities for Techcom Vietnam and Sea Air
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Techcom and Sea is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Techcom Vietnam REIT and Sea Air Freight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea Air Freight and Techcom Vietnam is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Techcom Vietnam REIT are associated (or correlated) with Sea Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea Air Freight has no effect on the direction of Techcom Vietnam i.e., Techcom Vietnam and Sea Air go up and down completely randomly.
Pair Corralation between Techcom Vietnam and Sea Air
Assuming the 90 days trading horizon Techcom Vietnam REIT is expected to generate 1.53 times more return on investment than Sea Air. However, Techcom Vietnam is 1.53 times more volatile than Sea Air Freight. It trades about 0.1 of its potential returns per unit of risk. Sea Air Freight is currently generating about 0.05 per unit of risk. If you would invest 550,000 in Techcom Vietnam REIT on September 18, 2024 and sell it today you would earn a total of 20,000 from holding Techcom Vietnam REIT or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 70.0% |
| Values | Daily Returns |
Techcom Vietnam REIT vs. Sea Air Freight
Performance |
| Timeline |
| Techcom Vietnam REIT |
| Sea Air Freight |
Techcom Vietnam and Sea Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techcom Vietnam and Sea Air
The main advantage of trading using opposite Techcom Vietnam and Sea Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techcom Vietnam position performs unexpectedly, Sea Air can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sea Air will offset losses from the drop in Sea Air's long position.| Techcom Vietnam vs. Sea Air Freight | Techcom Vietnam vs. Tng Investment And | Techcom Vietnam vs. SMC Investment Trading | Techcom Vietnam vs. Educational Book In |
| Sea Air vs. VTC Telecommunications JSC | Sea Air vs. Fecon Mining JSC | Sea Air vs. Saigon Viendong Technology | Sea Air vs. Petrolimex Insurance Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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